Is Russia Able To Replace Imported Goods With Domestic Products?

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Is Russia Able To Replace Imported Goods With Domestic Products?
Is Russia Able To Replace Imported Goods With Domestic Products?

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Events in Ukraine and the threat of economic sanctions from the United States and EU countries have shown that the main strategic resource of the economy of any country - the domestic consumer market - is occupied by foreign manufacturers. Will our country, if necessary, do without imported goods?

Is Russia able to replace imported goods with domestic products?
Is Russia able to replace imported goods with domestic products?

Light industry

The development of the country's agrarian complex requires massive support from the state. The point is that investments in agriculture are long-term. So, for example, the first results in the growth of beef production can be seen not earlier than in three years. However, in 2013 the government did a lot in this area - the volume of state financing of the agricultural industry amounted to 268 billion rubles, and the volume of agricultural production exceeded 6%.

The situation with the production of consumer goods is much simpler. Here, payback periods are much shorter, even for industries with technologically complex processes. So, to launch the production of domestic household appliances, clothing, footwear, components, etc. a year will be enough.

Production areas

To organize new production facilities requires significant investments. The owners of the city-forming enterprises will find money to launch new plants, and if they are not enough, the state can support them with the help of such mechanisms as subsidizing interest rates, grants, preferential transfer of state assets and state guarantees for loans.

You can use the experience of Poland, where an investor must invest at least 100 thousand euros in new production for a period of 5 years or more, or pay attention to the mechanisms used in South Korea, where the minimum investment is $ 5 million.

The territories in which new industrial enterprises are opened are most often declared as special economic zones (SEZ). Today, there are 28 such zones in Russia. If the government considers the creation of new SEZs unnecessary, then we can again turn to the experience of Polish manufacturers, where territories with new manufacturing enterprises are included in the existing SEZ. And, for example, in South Korea any territory, the development of which takes place with the participation of foreign investors, is assigned the status of a local “mini-SEZ”.

Why are special economic zones needed?

Special economic zones are called special because it is much more profitable to work in them than in any other territory. Koreans, for example, completely exempt their foreign investors from paying any taxes for a period of 5 years, and for the next 2 years they provide a tax rebate of 50%.

In India and Brazil, companies operating in the SEZ do not pay tax on imports of goods - this allows them to use the saved money to develop industrial production. Also, such entrepreneurs are exempt from income tax, duties and export taxes for a period of 10 years.

In Turkey, in addition to the exemption of entrepreneurs from income tax, the income of employees working at the enterprise is not subject to taxation, as well as benefits for the payment of utility costs.

In Vietnam, during the first 4 years of work, no income tax is levied, and the next 9 years, the tax is paid by entrepreneurs at a preferential rate of 5%.

Economic security

To ensure economic security and reduce dependence on imports of foreign goods, it is necessary to create our own production facilities for the production of those products that are currently more profitable to buy abroad.

In the future, this will make it possible to avoid situations such as in the case of Ukraine: against the background of the political crisis in the country, recent partners in defense-industrial cooperation refused to cooperate with Russia, and our country in an instant found itself without some key components. However, unlike the consumer goods market, the Russian defense industry has always received special attention.

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